Cheapest Housing In The US: Most Affordable Housing In 2022

Cheapest Housing In The US: According to a survey by the National Low Income Housing Coalition, a minimum wage worker working 40 hours per week could not afford to rent a two-bedroom apartment in any county in the United States in 2019.

The housing shortage has become a national concern, spreading beyond places with a reputation for high living expenses, such as New York and San Francisco.

According to a Moody’s Analytics methodology, which compares a state’s median housing price to the median income and loan interest rates, U.S. News decided which states offer the most cheapest housing while compiling its 2019 Best States rankings.

A family earning the median salary has exactly enough money to be approved for a mortgage interest rates on a home, costing the median household income in each state, which has a housing score of 100.

A household has more than enough income to do so, assuming a 20% down payment if the score is more significant than 100.

Cheapest Housing In The US

The cheapest places to settle down payment regarding cheapest housing are typically located south of the Mason-Dixon line. Several states, including Texas, Tennessee, and Alabama, can be found on our list of the least expensive places in the United States.

Remember to assess the benefits and drawbacks before moving to one of these affordable places.

A low cost of living is alluring, but the attractiveness wanes if it’s challenging to find work, the income is meager, or there aren’t many things to do nearby. Make a long trip to the city to ensure it meets your needs.

The ability to afford a home is one of the main worries that home buyers have. The cost of a median household income in the United States is $344,141 according to the Zillow Home Value Index, which only evaluates homes in the medium price range.

The median household income in the United States only has enough money to pay the mortgage on a $250,000 house because their annual income is only $67,521. As a result, many people could find that buying a home is too expensive.

The most significant determinant of housing expenses is location, and costs vary significantly from state to state. Nine states have average home values under $200,000, and eight have average home values over $500,000.

The Southern states often contain most of the states with the lowest cost of living. Additionally, these states typically have lower average living expenses. The house marker may offer excellent pricing elsewhere for those prepared to move.

Cheapest States to Buy a House in 2022

The following are the 10 states with the lowest average house value:

West Verginia

housing in west verginia

The least expensive state to purchase a home prices in is West Virginia. West Virginia’s average home prices is $129,103, which is less than half of the national average and over $30,000 less than Mississippi’s. For that much, a buyer can anticipate receiving 1,792 square feet of living area.

Homeowners in this state may expect to pay roughly $762 in state property taxes each year, which is the eighth-lowest rate in the US (0.59 percent). With 79.6% of its citizens owning their homes, West Virginia likewise has the highest homeownership percentage in the country.

  • Home median value: $130,625 (Zillow)
  • Price change over one year: 13.2 % (Zillow)
  • Price change over 5 years: 32.0% (Zillow)
  • Rent on average: $912 (GOBankingRates)
  • Bluefield, Clarksburg, Beckley, and Huntington are the least expensive cities to purchase a home in (Yahoo)
  • The scale of the cost of living: 91.1 (World Population Review)

Mississippi

housing in Mississippi

With an average property value of $157,828 in Mississippi, it’s the second-cheapest state in the nation to buy a house. This is less than half the average cost of a home prices in the US.

Mississippi’s 1,879 square foot median home size is more significant than some comparable states with higher housing costs. (mississippi river) Homeowners in Mississippi will pay property taxes at a rate of 0.81 % yearly, costing them $1,278. With 74.8 percent of residents owning their houses, Mississippi has the country’s second-highest homeownership rate.

  • Home median value: $159,955
  • Price change over one year: 15.0 %
  • Price change over 5 years: 37.5%
  • Rent on average: $989
  • Jackson, Greenville, Meridian, and Gulfport are the least expensive cities to purchase a home.
  • Index of cost of living: 86.1

Arkansas

Arkansas housing

Arkansas, which has a population of over 3 million, is the 33rd-largest state in the union. In part, Arkansas’s economy is fueled by manufacturing, tourism, and agriculture. The largest metropolitan area and the state’s capital are both in Little Rock.

  • Home Median value: $172,306
  • Price change over a year: 18.0 %
  • Price change over 5 years: 45.5%
  • Rent on average: $926
  • Cities with the lowest housing costs include Pine Bluff, Texarkana, North Little Rock, and Fort Smith.
  • Index of cost of living: 86.9

Oklahoma

Oklahoma’s average home price is $171,057, which is bare than half the $344,141 national average. Oklahoma’s median home prices size is 1,746 square feet, slightly more than Arkansas’.

Based on the mean house value, Oklahomans pay 0.90 % in property taxes, which amounts to around $1,540 annually. The percentage of homeowners in Oklahoma is 67.3%.

  • Home median value: $173,410
  • Price change over a year: 17.2 %
  • Price change over five years: 43.3%
  • Rent on average: $1,015
  • House-buying prices are lowest in Muskogee, Lawton, Shawnee, and Enid.
  • Index of cost of living: 87.0

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Lowa

Lowa has the fifth-lowest average home value in the United States at $183,418. One thousand five hundred fifty square feet is a typical residence size.

Homeowners should anticipate paying $2,861 in property taxes annually due to the comparatively high property tax rate of 1.56%. With 75.6 percent of the population being homeowners, the state still has some of the highest homeownership rates in the country.

  • Home median value: $184,972
  • Price change over a year: 12.0%
  • Price change over 5 years: 32.0%
  • Rent on average: $1,021
  • Cities with the lowest housing costs include Waterloo, Sioux City, Davenport, and Council Bluffs.
  • Index of cost of living: 90.1

Kentucky

With an average property value of $188,439, Kentucky is the sixth cheapest state to buy a house. In Kentucky, a typical house has 1,750 square feet of living area.

Based on the average home’s valuation, Kentucky’s effective state property tax rate is 0.86 percent, which implies that a homeowner would pay around $1,621 in state property taxes annually. The percentage of homeowners in Kentucky is 68.5 %.

  • Home median value: $190,575
  • Price change over a year: 15.2 %
  • Price change over 5 years: 47.3%
  • Rent on average: $1,025
  • Hopkinsville, Covington, Owensboro, and Bowling Green are the least expensive cities to purchase a home in.
  • Index of cost of living: 90.9

Alabama

The cost to purchase a home is seventh-cheapest in Alabama. The averagehome prices $194,695 in Alabama. At 1,800 square feet, Alabama’s typical home size is comparable to the national average.

With a 0.42 % state property tax rate, Alabama ranks second-lowest. Due to this and the low median house value, homeowners only have to pay yearly $818 in state property taxes. 71.5 percent of residents in the state are homeowners.

  • Home median value: $197,667
  • Price change over a year: 18.4%
  • Price change over 5 years: 51.2%
  • Rent on average: $1,060
  • Gadsden, Birmingham, Montgomery, and Phenix City are the most affordable cities to purchase a home.
  • Index of cost of living: 89.3

Kansas

At $198,199 on average, Kansas is the eighth cheapest state to purchase a home. A homeowner can expect to receive 1,782 square feet of living area for this amount.

Kansas’s effective state property tax rate is 1.41 percent, which translates to annual taxes for homeowners of around $2,795 per year.

Nearly 3 million people live in Kansas, the 35th-most populous state in the union. The Kansas economy is supported by manufacturing, natural resources, and agriculture. Kansas City is the largest urban region, while Topeka is the state capital.

  • Home median value: $199,893
  • Price change over a year: 13.4%
  • Price change over 5 years: 43.3%
  • Rent on average: $1,050
  • Hutchinson, Kansas City, Topeka, and Salina are the least expensive cities to buy a home in.
  • Index of cost of living: 89.0

Ohio

Ohio homes typically cost little, around $200,000 on average. Homeowners can anticipate receiving 1,620 square feet of living area for $199,959. Ohio’s state property taxes are much higher than those in the other states on this list, at 1.58 percent.

The typical homeowner should budget $3,159 per year for state property taxes. % of Ohioans are homeowners.

Ohio, the seventh-largest state in the US and another Midwestern state on the list is home to around 12 million people.(house hunters) Regarding economic sectors, manufacturing and financial services are the two most prominent.

The central urban region is Cincinnati, and Columbus is the state capital.

  • Home median value: $202,341
  • Price change over a year: 15.5%
  • Price change over 5 years: 54.7%
  • Rent on average: $1,024
  • Youngstown, Warren, Dayton, and Marion have the lowest housing costs.
  • Index of cost of living: 90.8

Louisiana

Louisiana’s median home prices is $205,972. A homeowner might anticipate receiving 1,786 square feet of living space at this amount. A 0.55 percent real estate market tax rate translates into an annual cost of $1,133 for the average homeowner. 69.7 percent of Louisianans own their homes.

With about 4.7 million people, Louisiana is the 25th most populous state in the US. Louisiana’s three biggest industries are agriculture, transportation, and tourism. The central urban region is New Orleans, and Baton Rouge is the state capital.

  • Home median value: $208,049
  • Price change over a year: 12.5%
  • Price change over 5 years: 25.4%
  • Rent on average: $988
  • Cities with the lowest housing costs include Shreveport, Alexandria, Monroe, and Marrero.
  • Index of cost of living: 93.9

Indiana 

Indiana, the 17th-largest state, has close to 6.8 million citizens. The manufacturing, agricultural, and healthcare industries are the backbone of the economy. Both the state’s capital and largest urban region are in Indiana.

  • Home median value: $212,953
  • Price change over a year: 17.7%
  • Five-year price change: 59.3%
  • Rent on average: $1,052
  • Gary, Anderson, Muncie, and Richmond are the least expensive cities to buy a home in.
  • Index of cost of living: 90.0

Missouri

More than 6.1 million people live in Missouri, the 19th most populous state in the US. Among the major industries are aerospace, transportation, manufacturing, and financial services. The central metro region is St. Louis, and Jefferson City is the seat of state government.

  • Home median value: $221,446
  • Price change over a year: 16.4%
  • Price change over 5 years: 51.0%
  • Rent on average: $1,086
  • St. Joseph, Florissant, Joplin, and Independence are the least expensive cities to purchase a home in.
  • Index of cost of living: 87.1

Michigan

With over 10 million people, Michigan is the tenth-most populous state in the nation. The manufacturing, natural resource, defense, and information technology industries support the state’s diverse economy. Detroit is the most extensive metro region, while Lansing is the state’s capital.

  • Home median value: $228,120
  • Price change over a year: 16.0%
  • Price change over 5 years: 57.9%
  • Rent on average: $1,140
  • Flint, Detroit, Bay City, and Saginaw are the least expensive cities to buy a home in.
  • Index of cost of living: 88.9

Nebraska

The 37th-largest state, Nebraska, has little under two million citizens. The state’s economy is partly fueled by agriculture, transportation, industry, and information technology. The largest metropolitan region in Nebraska is Omaha-Council Bluffs, while Lincoln is the state capital.

  • Home median value: $233,006
  • Price change over a year: 13.9%
  • Price change over 5 years: 49.0%
  • Rent on average: $1,103
  • Beatrice, Lexington, Hastings, and Scottsbluff are the least expensive cities to buy a home in.
  • Index of cost of living: 90.8

Wisconsin

With a population of around 6 million, Wisconsin is the 20th-largest state in the US. The economy is driven by essential sectors like manufacturing, agriculture, and consumer products. Milwaukee is the largest urban region, and Madison is the state capital.

  • Home median value: $254,680
  • Price change over a year: 14.0%
  • Price change over 5 years: 51.8%
  • Rent on average: $1,133
  • Beloit, Manitowoc, Racine, and Fond du Lac are the most affordable cities to purchase a home.
  • Index of cost of living: 97.3

Illinois

Illinois has a population of about 12.8 million, making it the sixth-largest state in the US. The mixed economy continues to grow because of the contributions of the service, manufacturing, finance, and investment sectors. The central urban region is Chicago, while Springfield is the state’s capital.

  • Home median value: $256,010
  • 14.2 percent price change over a year.
  • Price change over 5 years: 32.9%
  • Rent on average: $1,240
  • Danville, Galesburg, Decatur, and Peoria are the least expensive cities to purchase a home.
  • Index of cost of living: 94.5

Pennsylvania

Pennsylvania, which has a population of almost 13 million, is the fifth-largest state in the union. The state’s two major sectors are finance and agriculture. The central metro region is Philadelphia/Delaware Valley, while Harrisburg is the state’s capital.

  • Home median value: $257,272
  • Price change over a year: 14.5%
  • Price change over 5 years: 46.3%
  • Rent on average: $1,154
  • Housing costs are lowest in Harrisburg, Wilkes-Barre, Altoona, and Scranton.
  • Index of cost of living: 101.7

North Dakota

Pennsylvania, which has a population of almost 13 million, is the fifth-largest state in the union. The state’s two major sectors are finance and agriculture. The central metro region is Philadelphia/Delaware Valley, while Harrisburg is the state’s capital.

  • Home median value: $257,272
  • Price change over a year: 14.5%
  • Price change over 5 years: 46.3%
  • Rent on average: $1,154
  • Housing costs are lowest in Harrisburg, Wilkes-Barre, Altoona, and Scranton.
  • Index of cost of living: 101.7

South Carolina

With nearly 5.1 million residents, South Carolina is the 23rd most populous state in the US. The three most significant sectors in South Carolina are agriculture, manufacturing, and health care. The largest metro region in South Carolina is Greenville-Anderson, while Columbia is the state capital.

  • Home median value: $274,401
  • Price change over a year: 24.9%
  • Price change over 5 years: 58.9%
  • Rent on average: $1,115
  • Sumter, Spartanburg, Florence, and Columbia are the least expensive cities to buy a home in.
  • Index of cost of living: 95.9

New Mexico

With nearly 2.1 million residents, New Mexico is the 36th most populous state in the US. The service sector accounts for around half its GDP, with extractive sectors accounting for most of the remaining percentage (mining and oil production). Albuquerque is the largest urban region, and Santa Fe is the state capital.

  • Home median value: $281,938
  • 19.1 percent price change over a year.
  • Price change over 5 years: 55.8%
  • Rent on average: $1,134
  • Roswell, Alamogordo, Farmington, and Clovis are the least expensive cities to buy a home in.
  • Index of cost of living: 87.5

Observe these macro developments in 2022

With low borrowing rates and greater demand than supply, these factors defined the housing market in 2021. Will things remain the same or change drastically in the upcoming year?

Although a crystal ball doesn’t exist, there are a few macro trends that investors may keep an eye on to help forecast how the housing market will function in 2022:

  • People kept moving to the neighborhoods and smaller secondary and tertiary markets as the COVID-19 pandemic made working from home prices more common.
  • Interest rate rates and the impact of monetary policy.
  • Gross domestic product and economic expansion.
  • Job market shifts and consumer confidence.
  • Affordability and the average median property price.
  • Sales of new and existing homes.
  • Homeownership vs. the percentage of renters.
  • Starts with single-family homes and the overall supply of dwellings.
  • Markets where real estate market investment makes sense.

Frequently Asked Questions

What kind of housing is the most cost-effective?

housing in west verginia

The least expensive new homes are prefabricated, container dwellings and monolithic dome structures. Remember that you’ll also need to budget for the expense of buying property, building a foundation, paying taxes, using transportation, and obtaining permits. Of course, you could permanently save money and purchase an existing property needing repair.

Is housing affordable in the US?

Arkansas housing

One of the wealthiest nations in the world is America. The most expensive real estate in the world isn’t found in America, though. American real estate is quite reasonable in a nation the size of ours, with a median home price of only $340,000.

Which state has the most low-cost housing?

arizona

North Carolina. West Virginia, the 40th-most populous state in the union, has little under 1.8 million residents. Tourism and natural resources are among West Virginia’s largest industries.

Why is housing in the US so expensive?

cheap land in US

Low-interest rates have been a significant factor in home price growth, particularly in recent years. When interest rates fall, it becomes less expensive to finance a home, which encourages more would-be homeowners to buy real estate. Almost often, this rise in demand results in higher property prices overall.

Who benefits from high house prices?

Arkansas housing

Almost no one is benefited from house price bubbles.
High housing costs only help banks and individuals who own numerous homes since they force borrowers to take out larger mortgages for longer, increasing the banks’ interest payments.

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